Quarterly Activities Report
Sydney, April 27, 2022 AEST (ABN Newswire) - NSX Limited (ASX:NSX) is pleased to provide its Activities Report and ASX Appendix 4C Cashflow Statement for the period ended 31 March 2022 (3Q22).
Group Cash Flow Activities Report
- Cash at the end of the quarter was $1.9 million, following a net cash outflow of $1.3 million as part of continuing operations.
- During the quarter $0.3 million in cash receipts were received from customers. The cash receipts in the March quarter were up $0.09 million on the previous quarter, and up $0.1 million on the previous corresponding period (pcp). The company receives most of its annual revenue (on a cash basis) in the September quarter.
- Cash payments for administration costs for the quarter are $0.7 million down $0.1 million on December quarter but up $0.3 million on the September quarter. There were some one-off costs paid during December quarter related to ASX fees for $0.2 million and legal fees for $0.04 million. ASIC Industry Levy for $0.3 million was paid in March 2022.
- Cash payments for intellectual property for the period are $0.21 million up $0.09 million on the December quarter and up $0.2 million on the September quarter. This is part of ongoing software upgrades.
- Cash payments to staff, corporate and the board for the period were $0.4 million down $0.1 million on the previous quarter. This is mainly to reduction of staff during the previous quarter.
Quarterly Business Activities Report
NSX Limited Activities
- Directors being related parties of the Company, for the purposes of this report, were paid remuneration in the amount of $102,000 during the March quarter. No other related party payments were made.
- On 15 March 2022, Mr John Karantzis tendered his resignation. Mr Tod McGrouther was appointed the NSX interim CEO and Managing Director.
- On 12 April 2022, NSX announced the appointment of Mr Barnaby Egerton-Warburton as a nonexecutive, independent director to the boards of NSXL and NSXA after receiving ASICs non-objection.
- The Board is aware of the cash position as disclosed in the Appendix 4C, section 8. The Company has several methods which will increase the case available to the Company. These are:
o The bulk of cash drive from the operations of the business is received in the first quarter of each financial year. This means that the Company will satisfy the two quarters reporting requirement at that time; plus
o As the proposed JV in with Abiliti progresses it is expected that the JV wil raise capital to support the operations and licence capital requirements during 2022/2023 financial year. NSX's participation and support is in knowledge transfer and consulting which will generate consulting fees for the business; and
o The Company retains its ability to place up to 25% of the issued capital to interested parties and/or conduct a rights issue.
o The Company's major shareholder has provided written support that they would support a capital raise at the appropriate time.
ClearPay Joint Venture Activities
- DvP platform software development continues; and
- DESS Digital Ledger Technology system continues to operate with no downtime.
KSA Commodities & Securities Exchange MOU Activities
- As announced on 29 September 2021, NSX Limited entered into a joint venture with Ajlan & Bros Holding Group ("Abilitii") in the Kingdom of Saudi Arabia ("KSA") to explore opportunites to create a second securities and the first commodities exchange.
- The Company has continued its work on the business plan for submission to KSA regulators, and if this is successful would move to a joint venture arrangement.
- Meetings were held with the JV partner and representatives from the KSA Government and regulators during the period. Further information on market licence application conditions are expected in the next few weeks. This will provide further insights on how the JV may proceed.
National Stock Exchange (NSXA) Activities
- The activities of the Company's wholly owned subsidiary, National Stock Exchange of Australia ("NSXA"), involved business as usual processing of new admission applications and market operations.
- During the period 2 new issuers commenced quotation with another entity progressing through the admissions process.
- The NSXA continues to position itself as the venture and emerging companies exchange, creating a clear differentiation from other Australian markets.
- Draft ETP and ETF Rules completed and NSXA is working toward a package of informal rule lodgements in consultation with ASIC that also include alignment of rules with recent changes to ASIC Market Integrity Rules and the work associated with the NSX Trading System upgrade.
- NSXA is reviewing its position on Special Purpose Acquisition Companies ("SPAC's"), after the receipt of correspondence from ASIC on 7 April 2022.
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About NSX Limited
NSX Limited (ASX:NSX) via its wholly owned subsidiary National Stock Exchange of Australia Limited (NSXA) operates the Tier 1 Licensed stock exchange facility for the listing of equity securities, corporate debt and investment scheme units. The company is also involved in trading and settlement activities.